A puzzling citizen’s campaign sought to prevent the implementation of next year’s rules related to virtual asset exchange transactions. finews.com takes a look.
The crypto crowd knows how to make itself heard. Word-for-word. At least that is an impression one gets from a wide-ranging campaign against the Finma earlier this year.
The change itself is not all that significant. From the 1st of January, any virtual currencies exchanged for cash or other anonymous forms of payment will be subject to a monthly limit of 1,000 francs. Currently, that limit is applicable for one business day. Anything higher and the client simply needs to be adequately identified.
It all sounds eminently reasonable and follows from a similar step a year ago when Finma cut the limit from 5,000 francs to its current level. Moreover, it seemingly falls in line with the FATF’s 2019 guidance stating that virtual assets and virtual asset providers should be subject to the same measures applicable to financial institutions.
Veiled Campaign
But it seems that everyone forgot about the average – and very angry - Swiss citizen. As part of the regulator’s consultation process, many residents felt compelled to send identically worded letters and emails in a very thinly veiled campaign in multiple languages.
The gist of the letters goes somewhat like this: «I am a Swiss citizen and am deeply disturbed by the planned changes as I and people close to me increasingly use crypto. It deeply discriminates against those to want to exchange their monthly salaries for euros. I am shocked that there has been no analysis to explain the proposal and I reserve the right to take legal action should it be implemented.»
Apparently, exchanging salary monies for euros has become a thing. The only explanation is that either it has become unfathomably common, or the original instigator of the campaign is an EU-based virtual asset provider with a number of very active Swiss residents who have an unusual appetite for euros.
Bizarre Repetition
What makes it so bizarre is that it is such a blatant, ready-made cut-and-paste exercise across four languages. If you are going to make such an effort to sway an established regulator, it might be a good idea to check the fluency of each translation and maybe put a slight modification into each version – just as a suggestion.
That is because there were about 100 identical letters and emails in German sent from individuals with Swiss residential addresses and another 50 or so in French. Only four Italian speakers felt compelled to write, but they followed the same multi-lingual cookie cutter when doing so.
In English, nine of the letters had the same exact incomprehensible, quasi-existentialist sentence: «More and more people around me and me, myself, use cryptocurrencies in a daily manner, so save, spend and transfer to friends and family as well as in an entrepreneurial fashion.»
Finma Reacts
A call to Finma spokesperson Tobias Lux indicated the regulator was not particularly surprised at the comments it received during the consultation process. However, he indicated that the way in which these responses were provided was seemingly unusual in the context of the regulator’s hearing process.
In their view, it was likely that someone had prepared the text and published them centrally on a website for individuals to copy and send. As is customary, Finma analyzed each submission individually and weighed whether the concerns should be addressed in the ordinance. However, its subsequent response on the subject in question was a clear one and it would implement the tightened rules, as originally stipulated, at the start of 2023.
The world has also changed since the letters were written. There is Sam Bankman-Fried and FTX for one.
Worse than Winter
It all goes to show that the crypto winter is turning into something much worse. Given that, it will be interesting to see how all these passionate devotees react to the next round of Finma tightening. Which is something that is very likely to be a sure thing given current trends.
